Home Reversion Plans

Home Reversion Plans currently make up a small % of Equity Release products taken out and presently are only available to age 65 and over. They are not short-term commitments and not suitable for those wishing to buy back all or a share of their property during the term of the plan.

Providers of Home Reversion Plans purchase all or a share of your property in return for a Tax-Free cash lump sum, meaning the Provider will either own the property in full or the percentage you decide to part with.

In return you are granted a lifetime lease which gives you the security to live in your home rent-free until the surviving partner (if applying as a couple) is admitted into long-term care or sadly passes away. Because of the ‘Rent Free for life’ agreement, the monetary value for the percentage you decide to sell is heavily discounted and calculated by using your age, sex, and the current value of your property, so the closer to age 65 you are the less you may be offered.

With a Home Reversion Plan, unlike other available Equity Release schemes, there are no monthly payments to meet and there is no interest added to any amount due to the Provider when the property is sold. If you have not sold your entire home initially then it may be possible to sell further shares to obtain further loans as and when required and some providers guarantee to purchase further sums from you if your circumstances change in the future. Furthermore, all Equity Release Council approved Home Reversion Plans are portable, subject to the Providers criteria, meaning you can move home and any share you retain in your home can be left to your beneficiaries.

LSR Mortgages does not advise on Home Reversion Plans.